Algorithmic traders can use them like API-Keys on centralized exchanges and to manage cold-wallet funds with a hot wallet.

Institutions can use this feature to create sub-accounts for their traders with no possibility to withdraw funds.

How does it work?

The wallet holding the funds (“delegator”) has to register the “delegate” in the smart contract. Once this “delegation transaction” is mined the smart contract will accept orders signed from both addresses. The right to deposit or withdraw funds always remains with the delegator.